2019-10-17 08:35:00 Thu ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases. The ECB commits to further cutting negative interest rates to -0.5%. Also, the ECB refreshes radical monetary stimulus in the form of quantitative-easing (QE) government bond purchases. In particular, the ECB plans to buy €20 billion government bonds each month from November 2019 onwards. As the ECB president Mario Draghi expects to step down in late-October 2019, this key monetary stimulus helps fulfill his landmark legacy about a decade after the global financial crisis of 2008-2009.
Moreover, this strategic move serves as a defensive response to the recent dovish interest rate reductions in the U.S. and other countries such as India, New Zealand, and Thailand. In terms of global monetary policy coordination, these interest rate cuts anchor low and stable inflation expectations and exchange rates worldwide. The ECB can successfully assuage the concern and suspicion that most French and German central bank hawks share in recent times. Yet, the persistent negative interest rates and ad hoc QE government bond purchases draw direct criticisms from UBS and Deutsche Bank. The current monetary stimulus may or may not be sustainable in the long run.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-09-30 07:33:00 Monday ET
AYA Analytica finbuzz podcast channel on YouTube September 2019 In this podcast, we discuss several topical issues as of September 2019: (1) Former
2018-10-03 11:37:00 Wednesday ET
Fed Chair Jerome Powell sees a remarkably positive outlook for the U.S. economy right after the recent interest rate hike as of September 2018. He humbly su
2020-09-24 10:26:00 Thursday ET
Edge strategies help business leaders improve core products and services in a more cost-effective and less risky way. Alan Lewis and Dan McKone (2016)
2025-07-12 11:35:00 Saturday ET
Mitch Anthony explains why it is now more important for top sales leaders to apply social skills and emotional competences to fulfill customer needs, wants,
2024-02-05 11:26:00 Monday ET
China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco
2017-10-03 18:39:00 Tuesday ET
President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's